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City-hired contractor slapped with child-labor violation

B-1 Appeals Citation

By Justin Berton

A contractor currently working on a public works project for the city of Sunnyvale has been cited by a state labor agency for violating child labor laws--a violation labor watchdogs say the city should have seen coming.

The contractor, B-1 Enterprises of Rancho Cucamonga, is appealing the citation, which carries a $10,000 fine.

During an inspection on Aug. 11, state deputy labor commissioner Juan Garza witnessed a 14-year-old boy working at the site near the corners of Roosevelt and Columbia avenues in Sunnyvale.

The legal age to work on a construction site is 18 years old, Garza said.

William Nack, deputy executive officer with the local Building & Construction Trades Council, appeared at the Sept. 22 council meeting to reprimand the council for hiring B-1 after his group warned the city of the company's track record seven months ago."The city of Sunnyvale may be on the cutting edge of technology," Nack said; "unfortunately, when it comes to workers' protections, it is our opinion that you are still in the 19th century."

The underage worker was identified as the son of B-1's president, Neil Dilello.

B-1 lawyer Barry Jensen said the boy was on school break helping his father work. "He loves the construction business and wants to learn all about it." Jensen said.

Jensen said the boy was not in danger and was not doing any heavy work-- stipulations he said will vindicate his client at the hearing.

Jensen maintained labor unions are still unfairly dogging B-1 after the the company disbanded the union from its ranks 10 years ago.

"We don't know what they are going after, but they are not going to find it."

According to records from the state Department of Industrial Relations, Dilello and his son were also cited in July at a job in Manteca, Calif.In that incident, which B-1 is also appealing, the boy was allegedly operating a backhoe on the project.

Garza said hearings held by the state division of labor standards will be scheduled within 45 days, most likely after B-1 is due to complete its work in Sunnyvale.

In the meantime, the city would not consider taking action against the company until the hearings are completed and the violations were upheld, said city attorney Valerie Armento .

Under California labor code Sect. 1727, the city's only legal obligation is to be "cognizant" of the citation.

"The state takes the lead on this," Armento said.

Sunnyvale director of public works Marvin Rose also said B-1 would not be sanctioned by the city, and would continue to complete its $450,000 project.

Rose said the city would only pull a contractor from a job if the contractor's state license had been revoked, due to a serious violation.

Rose said this is the first time a city-hired contractor was cited for a child labor violation.

Garza also said this was the first time he could recall that a contractor hired by a California public entity was cited for violating child labor laws.

"I really can't believe it," Garza said of B-1's continuing employment in Sunnyvale. "As a public entity, I would think they would be would be more conservative and accountable to the constituents they serve."

In April, a cautious City Council divided by legal and moral lines voted to hire B-1 for the city's annual curbs and sidewalks contract.

Despite objections from lawyers representing labor unions, the council voted 5-2 to hire the company that was tangled up in legal matters related to other alleged labor violations.

At the time, B-1 had been cited by a city inspector in Oxnard, Calif., for committing a laundry list of alleged labor violations, including withholding overtime pay from workers, falsifying bookkeeping and providing substandard living conditions for employees.

At the April meeting, Mayor Jim Roberts spoke for the majority of the City Council when he reasoned, "We want to make decisions based on facts, not allegations."

The city is bound to accept the lowest bidder on public works projects--B-1 had underbid its competition by $30,000. To do otherwise, Roberts cautioned, could leave the city open to legal action.

But councilmembers Fred Fowler and Julia Miller voted in the minority, both stating the city should refrain from doing business with B-1.

A settlement from the Oxnard allegations was reached last month.

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This article appeared in the Sunnyvale Sun, September 30, 1998.
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